June 22, 2018 / 9:55 PM / 23 days ago

EMERGING MARKETS-Mexico peso jumps on oil, Brazil stocks edge up

 (Recasts with peso gains, updates prices)
    MEXICO CITY, June 22 (Reuters) - Mexico's peso surged on
Friday, gaining the most in six weeks as it tracked a rally in
oil prices, while stocks in Brazil edged back from a steep
selloff.
    In currency markets, the peso climbed 1.5 percent
to a nearly three-week high. That was its biggest one-day gain
since May 10. The peso firmed for the third session in a row as
it clawed back ground from a 1-1/2-year low it hit last week. 
    Oil prices rose sharply after the Organization of the
Petroleum Exporting Countries agreed to only modest crude output
increases at a time of rising global demand. Mexico is a major
crude exporter.
    Also supporting the currency, Mexico's central bank hiked
its benchmark interest rate 25 basis points to a more than
nine-year high of 7.75 percent on Thursday and the interest rate
swaps market pointed to another hike in August.

    Mexico's peso had been hit by a broad dollar rally, a
deadlock in talks around the NAFTA free trade deal, and
nervousness ahead of Mexico's July 1 presidential election. But
it has suffered less than Brazil and Argentina's currencies.
    Emerging markets worldwide have been hit hard in recent
months by fears of a global trade war, among other factors, with
Brazilian stocks among the big losers.
    Brazil's Bovespa climbed 0.81 percent after
shedding nearly 3 percent in the prior session.
    Rental car company Localiza Rent a Car SA shares
rose 2.8 percent after it announced on Thursday night plans to
buy back up to 43 million shares.
    Miner Vale rose 1.7 percent, tracking higher iron
prices in China.
    
Key Latin American stock indexes and currencies at 2015 GMT:
    
 Stock indexes               Latest        Daily   YTD pct
                                             pct    change
                                          change  
 MSCI Emerging Markets        1,087.41      0.67     -6.76
                                                  
 MSCI LatAm                   2,438.26       1.3     -14.9
 Brazil Bovespa              70,640.65      0.81     -7.54
 Mexico IPC                  46,737.64       0.6     -5.30
 Chile IPSA                   5,375.12     -0.19     -3.41
 Chile IGPA                  27,231.05     -0.01     -2.68
 Argentina MerVal            30,227.14     -2.08      0.54
 Colombia IGBC               12,019.93     -0.42      5.71
 Venezuela IBC               71,616.53      3.63  5,569.72
                                                          
 Currencies                     Latest     Daily   YTD pct
                                             pct    change
                                          change  
 Brazil real                    3.7819     -0.54    -12.39
 Mexico peso                   20.0250      1.51     -1.63
 Chile peso                      636.4      0.46     -3.42
 Colombia peso                   2,914      1.22      2.33
 Peru sol                        3.269      0.15     -0.98
 Argentina peso (interbank)    27.0100      1.89    -31.14
                                                  
 Argentina peso (parallel)        27.9      0.36    -31.08
                                                  
 
 (Reporting by Sheky Espejo and Michael O'Boyle
Editing by Toni Reinhold)
  
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